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Ches Astro Co, sold 20,600 units of its only product and incurred a $55,028 loss (ignoring taxes) for the current year as shown here. During
Ches Astro Co, sold 20,600 units of its only product and incurred a $55,028 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018's activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $156,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 sales $784, 860 Variable costs 627.9BB Contribution margin 156, 972 Fixed costs 212, 800 Net loss $(55,828) Compute the predicted break-even point in dollar sales for year 2018 assuming the machine is installed and the ange in the unit selling price. (Round your answers to 2 decimal places.) Check my wor 2. Compute the predicted break-even point in dollar sales for year 2018 assuming the machine is installed and there is no change in the unit selling price. (Round your answers to 2 decimal places.) Contribution margin per unit Proposed Cotton Margin Ratio Choose Numerator Choose Denominator = Contrition Margin Ratio Contribution margin ratio Brak even point in dollar sales with new machine Choose to Choose Denominator Break Even Point in Dollars Break-even point in dollars
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